Apple Maps Ads and a $2,000 Foldable iPhone: The Two-Pronged Strategy Shaping Apple's Future

Apple gears up for Q2 earnings, Maps ad revenue, a $2,000 foldable iPhone Ultra, and a CEO change—key events shaping its future.

Apple is entering a pivotal week with its fiscal second-quarter earnings due Thursday, but the narrative surrounding the tech giant extends far beyond the upcoming numbers. The company is simultaneously preparing to monetize its Maps app with local advertising and readying a foldable iPhone that could redefine its premium pricing strategy—all while a leadership transition looms.

Maps Advertising Goes Live This Summer

Starting this summer, Apple will begin displaying local advertisements in its Maps application across the United States and Canada. Code within the latest iOS 26.5 beta suggests businesses will be able to secure placement in search results and a new "Suggested Places" section. Users will not have the option to disable these ads, though Apple has pledged strict privacy protections—interactions will not be linked to personal Apple IDs or shared with third parties.

The move is a direct extension of Apple's push to expand its high-margin services business, which already generates over $30 billion in quarterly revenue. Goldman Sachs expects further growth in this segment when Apple reports earnings on April 30.

The Foldable iPhone Ultra: A September Debut

While Maps advertising targets near-term revenue, Apple's product roadmap points to a far more ambitious hardware play. Reports from April 27 indicate the first foldable iPhone will arrive shortly after incoming CEO John Ternus officially takes the helm on September 1, 2026. The device, reportedly called the "iPhone Ultra," is expected to debut at Apple's annual fall event just two weeks later.

The foldable will feature a 7.8-inch inner display in a passport-style form factor—11 mm thick when folded and 5.5 mm when opened. Powered by the new A20 Pro chip, the device is expected to carry a price tag of approximately $2,000, significantly above Apple's traditional iPhone pricing. It will launch alongside the regular iPhone 18 Pro models, with analysts interpreting the timing as a deliberate effort to position Ternus as the face of a new product category, distancing the company from the mixed reception of the Vision Pro.

Earnings Expectations and Market Sentiment

Apple's stock currently trades at around €229.60, roughly 35 percent above its 52-week low from last June but down 1.6 percent year-to-date. The relative strength index sits at 36.5, signaling cautious sentiment ahead of Thursday's report. Goldman Sachs analyst Michael Ng maintains a $330 price target, dismissing concerns about rising memory chip prices tied to the AI boom as overblown.

For the December quarter, analysts are already projecting revenues of roughly $150 billion, buoyed by anticipated high average selling prices from the foldable lineup. In the most recent quarter, Apple captured 21 percent of the global smartphone market—a record for an opening quarter—driven by notable market share gains in China, India, and Japan.

Services, AI Hardware, and the CEO Transition

At a recent internal town hall, Ternus signaled a stronger focus on services, describing Apple Pay, Music, and TV as a "recurring revenue powerhouse." This emphasis on subscription income comes alongside concrete signs of AI-driven hardware demand: the $599 Mac mini is sold out at major online retailers, fueled by interest in compact systems for local AI applications. Apple is also reportedly developing a wearable "AI Pin" for the ambient computing market.

The earnings call on Thursday will be the first since the announcement of Apple's leadership change. CEO Tim Cook and CFO Kevan Parekh are scheduled to comment on results at 11:00 p.m. MEZ. Investors will be watching closely for gross margin guidance, which management recently estimated at 48 to 49 percent, and for any strategic signals from Cook's final quarterly commentary before the transition.